Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - Truist Securities has lowered its price target on Deckers Outdoor (NYSE:DECK) to $105.00 from $145.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading at $87.78, below the analysts’ target range of $92-$157, with analysis suggesting the stock may be undervalued.
The price target reduction follows Deckers’ second-quarter results for fiscal 2026, which fell short of investor expectations. The company’s shares dropped approximately 13% after market close when the results were announced. Despite the recent decline, InvestingPro analysis shows Deckers maintains excellent financial health with a score of 3.38 (GREAT), supported by strong liquidity with a current ratio of 2.94 and minimal leverage with a debt-to-equity ratio of just 0.13.
The disappointing performance was marked by year-over-year declines in both total domestic sales and direct-to-consumer (DTC) sales. Management also provided full-year guidance that came in modestly below the framework outlined in the first quarter, citing a softening U.S. consumer environment. However, the company maintains robust profitability metrics, with a return on equity of 44% and return on assets of 27.7%.
Despite the downward revision, Truist Securities noted several potential positives, including management’s historically conservative guidance approach, strong wholesale sell-through, and a positive Spring/Summer orderbook. The firm also highlighted sequentially improving DTC trends for the company’s HOKA brand.
Truist believes Deckers has opportunities to outperform expectations in the second half of fiscal 2026, with particular strength possible in fiscal 2027 when the company will face easier year-over-year comparisons for its HOKA brand.
In other recent news, Deckers Outdoor reported its fiscal second-quarter results, which exceeded expectations with notable wholesale growth of 13% and a 29% increase in international sales, despite a 2% decline in U.S. sales. The company’s gross margin performance also surpassed projections, driven by tariff timing benefits. However, analysts have expressed concerns about the company’s future prospects, leading to several price target adjustments. TD Cowen lowered its price target to $124 while maintaining a Buy rating, citing strong international performance. Bernstein SocGen Group reduced its target to $85, maintaining an Underperform rating, due to weak second-half guidance and shrinking U.S. sales for key brands Hoka and Ugg. Telsey Advisory Group adjusted its target to $105, maintaining a Market Perform rating, noting sequential deceleration in Hoka and Ugg sales despite better-than-expected margins. BTIG kept a Neutral rating, highlighting mixed brand performance and ongoing challenges for Hoka in the upcoming fiscal period. Additionally, Needham lowered its price target to $113, maintaining a Buy rating, following the company’s earnings report that beat expectations but resulted in a negative market reaction.
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